If you are looking for a luxury rental property, this is the application process you should expect to undergo. Also included are some helpful hints and tips that may aid you in negotiating a more attractive rental price.
1. Establish your ideal requirements (house/condo, one/two/three bedrooms, furnished/unfurnished, six/nine/twelve months, water view and son on) and then inform your realtor.
2. Your realtor should then (using the criteria provided) furnish you with a list of potential properties.
3. Make a shortlist of immediately favorable examples and again inform your realtor. He/she should then set a date/time for you to view these properties in person.
4. Once a choice has been made, your realtor should write on your behalf a ‘Memorandum for Lease’, which should be signed by all prospective lessees before being presented to the listing realtor (if any). This document is exactly what it describes. It is effectively a basic proposal for lease and should contain all of the relevant information required (names, current addresses, outlined responsibilities etc) in order for the prospective landlord to compile the actual lease agreement. The lease agreement is always an arrangement made solely between the lessees (tenants) and the lessor (landlord) and will never involve the real estate agent or broker.
Click here to view a copy of our standard Memorandum for Lease agreement.
5. It is normal practice upon compilation and before presentation of the ‘Memorandum for Lease’ to pass over to your realtor a dollar amount not necessary to exceed the equivalent of one months rental value. This is then stated so within the memo and shows ‘good faith’ to the lessor and indeed your realtor. It is also normal practice when proposing any lease agreement to pay the first and last month’s rent money in advance of lease commencement, and present one month rental value as a security deposit. The security deposit is normally held by the lessor for the duration of the lease and returned only upon satisfactory inspection of the property after lease termination.
6. Once the terms listed within the ‘Memorandum for Lease’ agreement are agreed upon by the lessor and all signatures recieved, as stated previously it becomes the obligation of the lessor to prepare the final lease agreement. However, it is at this point (at the signed and accepted ‘Memorandum for Lease’) that an application to the condo association (if applicable) must be made by the lessee (normally within 2 days) and a satisfactory credit report must be provided (at the discretion of the lessor). Any final lease agreement is always contingent upon condo association and satisfactory credit approval. Only then should a final lease agreement be prepared, which should be checked in its entirety before final signature.
7. In the case of a furnished rental, the final lease agreement should also be accompanied by a complete list of property inventory which needs to be signed off once you are in agreement with its content. Known as a ‘walk through’, this can be held at any time, from the point of final lease signature to any time leading up to the day of the lease commencement. Whichever is preferred.
8. When the final lease is agreed and signed by all parties, and the move in date has been set, you will need to pay the balance of all rent and security deposit monies to your realtor by means of by cash, cashiers check or locally drawn personal check provided that all checks will have cleared prior to occupancy. Normally if you have presented one month’s rental value at the preparation of the ‘Memorandum for Lease’ this will leave you a balance of two month’s money which must be paid in ‘cleared funds’ prior to the exchanging of any keys. It is then the obligation of your realtor to disperse these funds to the rental listing realtor (if any) and/or the lessor.
Hints & Tips
- Rule #1: It is always possible to negotiate rental values. Very rarely are they ‘set in stone’.
- It is possible to write into the memo a 48 hour payment window for the initial ‘good faith’ deposit. Only recommended in cases where the outcome is not immediately apparent (such as a lower offer of price or an irregular lease period). This will allow you to make an offer on a rental property and simply walk away (without the hassle of reclaiming deposit monies from your realtor agency) if the lease proposal is not accepted.
- If you are thinking of making an offer less than full price and you are liquid enough, months paid ‘up front’ go a long way in persuading the lessor to accept a lower price.
- Similar to a purchase, when you do find your ideal rental property, try to contain your emotions whilst in the presence of the listing realtor or owner if the case. For obvious reasons this will help if you do decide to place an offer lower than that of the rental list price.
- Ask you realtor to find out how long the property has been vacant for, if at all. Another huge factor which should be taken into account when figuring out your $ proposal.
For more information on Miami Beach luxury rentals, please email Rentals@SoBeLuxuryHomes.com
